Trading volumes jumped and with them the stock market results

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In stark contrast to the trend seen in the market, the stock market’s share soared by 44% since the beginning of the year to a record value of NIS 1.7 billion – three times its value at the time of the IPO a year ago.

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The TASE reports, published yesterday, may explain this unusual jump in the background of the crisis that characterized stock prices during the Corona period. The TASE earned NIS 10.4 million in the second quarter, compared with NIS 5.5 million in the corresponding quarter in 2019 – a jump of 90%.Ebitda (Cash flow operating profit) increased by 26% to NIS 21 million.

The jump in profits in the second quarter follows the first quarter of 2020, in which the stock exchange recorded a similar profit of NIS 10.2 million. Revenues in the second quarter amounted to NIS 73.5 million, a jump of 17%, compared with NIS 62.9 million in the corresponding quarter. However, compared to the first quarter of 2020, the picture is different: at that time, they amounted to NIS 81.5 million, a figure 10% higher than in the second quarter. The closure, which left people in homes, appears to have contributed to an increase in trading volumes and commissions charged by the stock market in the first quarter.

Stock Exchange CEO Itai Ben ZeevPhoto: Tommy Harpaz

The average daily turnover in Tel Aviv in the quarter was NIS 1.9 million in shares and NIS 4.4 billion in bonds, about 60% higher than in the previous year. As the market recovered and the economy returned to activity, trading volumes declined. Trading in the various segments contributed about 29% to growth in trading revenues andClearing. On the other hand, a decrease in trading days between quarters resulted in a 5% decrease in revenue. ”

When the results were published, Itai Ben-Ze’ev, CEO of the TASE, stated that “the support of governments and central banks for economic activity and citizens has led to a stabilization in stock prices and interest rates on the TASE, similar to what is happening in the world. From the beginning of the year, the increase in trading volumes and liquidity has led to a significant entry of the general public and we hope that they will remain as permanent activists in the Israeli capital market. ”

Ben-Ze’ev holds 4.25 million options on the shares of the stock exchange, which he received a year ago in his contract. These can be realized from 2024, and are in the money. Their exercise price reflects a value of NIS 1.2 billion for the stock exchange, and the CEO has a profit of about NIS 20 million on paper. Only NIS 1,000 in the second quarter of 2020.

The stock exchange explains that the cash flow, which stood at NIS 67 million in the second quarter, will be negative in the third quarter. This is due to the costs of the grants to employees that it is supposed to pay in light of the agreements in principle reached between it and the Stock Exchange Employees’ Committee. In a special collective agreement between the stock exchange, the General Workers ‘Union and the workers’ committee, the distribution of the annual grants to the company’s employees for the years 2019-2017 was regulated, among other things. Thus ended the labor dispute in the organization, which opened against the background of bonus payments.

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